This took its year-to-date gains against the American greenback to 16.29%.

It traded at a mid-rate of GH¢13.60 to one dollar at the close of the week’s trading on the retail market.

The market remained liquid following an aggregate market supply of US$378.6 million.

The local unit also gained 7.61% week-on-week versus the pound and 5.81% to the euro.

The cedi began the week on May 12, 2025, selling at GH¢13.60 to one US dollar in the retail market. In the interbank market, it is going for GH¢12.89 to one dollar.

The Global Credit Rating Agency S&P Global Ratings upgraded Ghana’s long- and short-term foreign currency sovereign credit ratings to ‘CCC+/C’ from ‘Selective Default.’ The agency also affirmed the country’s debt at “CCC+” and long- and short-term local currency ratings at ‘CCC+/C,’ with a stable outlook on both the foreign and local currency ratings.

The firm attributed the upgrade to Ghana’s economic growth, ongoing fiscal reforms, and Ghana’s improved external position against high debt service costs, along with an improving track record of public financial management through election cycles.

Analysts see the upgrades as positive developments that will support the cedi’s stability in the near term. However, this week, they expect the cedi to continue gaining on improved sentiments and Bank of Ghana’s support.

Professor William Baah Boateng, speaking on Joy News’ PM Express Business Edition on Thursday, May 8, cautioned against being carried away by the strengthening currency, especially when the structure of the economy remains unchanged.

“When you look at the structure of the economy, we still have the same structure as it used to be last year,” Prof. Baah Boateng said.

“But something is happening in terms of the fiscal. Government has tried as much as possible to manage expenditure, and that is one thing you cannot lose sight of.”

He clarified that the current policy posture should not be confused with aggressive cost-cutting.

“Government is not cutting expenditure. We have to differentiate between cutting expenditure and managing expenditure,” he said. “Government is making sure that the expenditure it incurs will be supported by economic activity. That helps tame the fiscal side.”

Prof. Baah Boateng explained that such fiscal discipline is easing pressure on the monetary side.

“Now, if fiscal is putting its acts together, then it means that the mess will not be there for the central bank to come in. The central bank will have peace of mind to focus on monetary and exchange rate policy,” he added.

He also weighed in on calls from some business leaders, particularly those in GUTA, who are celebrating the cedi’s strength and predicting further gains.

“I disagree with my friend from GUTA who said he would be happy to see the dollar go from ¢13.49 to ¢5,” he said pointedly. “I’ll be happy if he says that when the dollar goes down, he will reduce his prices accordingly. But if that’s not going to reflect in the domestic market, then we have to be very careful.”

Prof. Baah Boateng was especially critical of traders who increase prices when the cedi weakens but fail to reduce them when it appreciates.

“If the cedi is appreciating, then they should reduce the price in anticipation of further appreciation,” he insisted. “Importers always increase prices in anticipation of depreciation. Let’s see the same behaviour in reverse.”

On the role of the Bank of Ghana, the economist praised the central bank’s calm stance.

“What I see the central bank doing is watching and not just reacting,” he said. “There’s no economy that has only demand and supply doing everything. There is always some regulation. So the Bank of Ghana’s posture is prudent.”

He cautioned again, “Don’t let us just talk about perfect competition or extreme monopoly. No economy is purely one or the other. There is always intervention.”

Prof. Baah Boateng emphasised that while the current economic environment appears to show signs of recovery, the fundamentals require sustained structural reforms and responsible fiscal management—not just short-term currency appreciation.

According to the Bank of Ghana, the local currency traded at GH¢15.53 to the American greenback on the interbank market as of March 2025.

In January and February 2025, the cedi weakened by 5.3% and 3.9%, respectively, against the US dollar.

Similarly, the cedi lost 9.2% of its value against the euro in the first quarter, trading at GH¢16.75 on the interbank market. Against the British pound, it depreciated by 8.2%, selling at GH¢20.03.

However, last week, the local unit gained 0.31% week-on-week against the US dollar in the retail market, closing at a mid-rate of GH¢15.90. This reduced the year-to-date loss to 2.36%.

Next week, a team from the International Monetary Fund (IMF) is expected to visit Ghana to begin the fourth review of the US$3.0 billion Economic Credit Facility programme.

The review will assess the country’s performance under the IMF programme and the 2025 Budget.

Analysts believe a successful review could pave the way for another tranche disbursement, which would support the Bank of Ghana’s market intervention efforts and help stabilise the cedi.